Relationship of Wine Consumers Self Confidence, Nelson Barber, M.S. Texas Tech University

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Relationship of Wine Consumers Self Confidence,
Product Involvement and Their Purchase Decision
Nelson Barber, M.S.
Texas Tech University
Tim Dodd, Ph.D.
Texas Tech University
INTRODUCTION
Demand for table wine in the U.S. is stronger
than at any time since the 1970s.
This growth in wine demand places added
pressure on gaining the attention of the
United States wine consumer.
Understanding how consumers choose wine
can assist in pricing, packaging, advertising,
and merchandising strategies.
Consumer Self Confidence
• The concept most often used by consumer
researchers to define consumer’s perceived
risk involves the uncertainty and adverse
consequences of buying a product or
service.
• With this uncertainty, risk-reduction
strategies are developed by consumers.
Consumer Self Confidence – cont’d
• The uncertainty or perceived risk has mainly
been viewed through performance and social
risk.
– Perceived risk can be created by
attributes of a specific product; such as
price, brand quality, or packaging
(performance risk).
– It can be linked to the individual’s
purchase goals of self consumption or gift
giving (social risk).
Consumer Self Confidence – cont’d
• The choice and resulting perceived risk
creates an anxiety-producing situation.
• Individual's realizing a product must be
selected can cause feelings about their ability
to handle the situation.
• In summary, self confidence is a consumer’s
– belief in their abilities,
– a mental attitude of trusting or relying on
oneself to make the right purchase
decision,
– a feeling of freedom from doubt.
Consumer Involvement
• Involvement is thought to exert a
considerable influence over consumers'
decision processes.
• Involvement can be linked to a wine
purchase with high and low involved
buyers reacting differently.
• Higher involved consumers utilize more
information and are interested in learning
more.
• Low involvement consumers simplify
choices through risk reduction strategies,
such as price, label design and retail
sales personnel.
Consumer Demographics
• The role of demographics in the formation
of market segments is well documented.
Studies have found:
– Wine consumption by age group has
changed since 1995.
– A gender comparison revealed certain
front label cues significant to females.
– Wine has a feminine image among
men and this image prevents them
from drinking wine.
The Study
This study examined how levels of consumer
self confidence and product involvement interact:
 with attributes of wine packaging,
 which attributes consumers rely on when
making a wine purchase, and
 whether consumers are influenced differently
based upon their level of self confidence and
product involvement.
METHODOLOGY
This study used a self-administered questionnaire
to assess:
 socio-demographic characteristics (e.g. age,
gender and income level),
 consumer behavior activities (e.g. frequency of
use, type of information sources) and
 psychographic information (opinions,
motivations and attitudes).
Sample Selection
The Study was conducted in the State of Connecticut.
 The questionnaire was pilot-tested at a retail wine
store to assess the reliability and clarity of the
questions.
 Data were collected through a convenience sample
of two retail shops and five wineries.
 1,000 questionnaires were handed out to
customers.
There was a 34% response rate.
Data Analysis
The data were analyzed using descriptive statistics,
exploratory factor analysis and multivariate analysis of
variance. Post hoc testing was performed if the results
were determined to be significant.
Data Analysis – Cont’d
Respondents were classified into high self
confidence (“not concerned”), neutral and low self
confidence (“concerned”) using the mean score
and standard deviation.
Of the 339 respondents, 29% reported high self
confidence, 39% were neutral, and 32%
reported low self confidence.
Data Analysis – Cont’d
Following research conducted by Yuan et al.
(2005), respondents were classified into low or
high Involvement using the overall mean and
distribution.
Respondents scoring below the mean were
defined as the wine enthusiasts and those above
were wine novices.
Of the 339 respondents, 49% were wine
enthusiasts and 51% were wine novices.
RESULTS AND DISCUSSION
• Male (37%) were lower than that of female
respondents (63%).
• Forty-three percent were over 55 years of age
while 14% were under 35 years of age.
• Those with low self confidence represented
34% over 55 years of age and 26% under 35
years of age.
• Sixty-five percent had annual household
income above $75,000 with 9% reporting
income less than $35,000.
• Respondents with low self confidence
represented 36% with household income
greater than $75,000.
• Forty seven percent had a graduate and postgraduate degree, with (37%) of those with low
self confidence.
RESULTS AND DISCUSSION – Cont’d
As expected, respondents with high levels of self
confidence found front label attributes vintage,
varietal and label image, picture and logo
significantly less important than those with low
levels of self confidence.
RESULTS AND DISCUSSION – Cont’d
Males were significantly more likely to look
for vintage and grape varietal when making
a wine purchase as well as those with low
self confidence.
Males with low self confidence and
low involvement will ask for assistance at a
retail shop when making a wine purchase
decision.
CONCLUSION
Wine attributes are perceived differently by
consumers; and depending on risk will choose
wine differently.
Social, economic, functional and psychological
aspects of a product are examples of risk
associated with a wine purchase.
The results of this study showed the
importance of front label knowledge as
significant to respondents, with males and
those with low self confidence relying on
vintage and grape varietal.
CONCLUSION – Cont’d
This study found that respondents with low
self confidence and low involvement,
particularly males, price was an important cue.
As the price point increased above $10, male
respondents expressed more concern about
the wine buying decision than did females.
CONCLUSION – Cont’d
It is difficult for the concerned and low involved
consumer to know if a $15 wine is worth the
investment.
Consumers’ must weigh quality (rating scores)
against price to make the purchase decision.
Retailers and restaurants could use a simple
price to quality ratio similar to the Quality Price
Ratio (Monnens, 2006).
CONCLUSION – Cont’d
Identifying the consumers’ levels of involvement and
self confidence, and their wine buying preference cues
will add a deeper understanding of the wine consumer.
Wine producers are facing a market where wine
consumers are in need of useful, simple and pertinent
wine information:
 The package
 Information sources
• magazines
• newsletters
• shelf talkers
• wine lists
• retail sales associates
CONCLUSION – Cont’d
Before creating costly, innovative product development
schemes, wine producers should understand how
consumer self confidence and involvement impacts
their decision to purchase wine.
Understanding these consumer needs will
help wine producers or restaurants with wine
lists focus their marketing. This will ultimately
achieve better results and develop a loyal
consumer base.
Questions
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